The Federal Open Market Committee (FOMC) has sounded an alarm regarding the potential for stagflation in the U.S. economy, largely due to concerns over trade tariffs. At its March meeting, the FOMC adjusted its economic forecast downward while raising its inflation projection, citing tariffs as a significant factor. Fed Chair Jerome Powell emphasized that tariffs could lead to higher inflation, slower growth, and increased unemployment. Despite this warning, President Trump has shown no indication of heeding the Fed’s advice, maintaining high tariffs on imports from various countries. The Fed kept interest rates steady at its most recent meeting, reiterating concerns about the economic impact of tariffs. Meanwhile, U.S. stocks experienced gains, with notable increases in Disney and Nvidia shares, and discussions continue around potential trade deals, including one between the U.S. and Britain.
— new from CNBC
